The war can be considered to mark the end of a 20-year era of peace (by Israeli standards) and prosperity (by anyone's standards) The defense budget's share of GDP is one of the highest in the world. The streets and shopping centers are full of uniformed soldiers, and large numbers of civilians carry automatic weapons.

The Israel Defense Forces (IDF) is increasingly relying on technology and air power rather than tanks and infantry to provide deterrence. Israel grew as a “start-up nation” The growing feeling that Israel was safe and easily recover from regular wars gave the economy a huge boost.